2 Important Aspect of A Fund Manager - Trader and Client

If you are fund manager without funds, likely you cannot get customer but it churns a different result for the other way round. Investor will feel better when they invest in something others are already investing.

You will already be successful if you have a bunch of loyal investors whom will stick with you for a good 6% - 8% a year. This kind of funds will grow as long as you make your customer happy with consistent returns and fast withdrawal. The kind of investment have to legit and licensed. It won't be long before they refer their friends or personally invest more money with you. This require a lot of hard work to begin with:

You will have to look for a good investment product or work for a certain company

Interview process take very long and you will take a lot of papers after you are being hired

You need to convince your first customers whom likely have suffered a lot of investment lost before

There will be plenty of rejections before you will get you first customer who will just invest a minimal amount with you

Starvation and dejection become your breakfast, lunch and dinner

After years of hard work you finally manage to build a pool of customers but still unable to generate passive income for you because the AUM fee is too low

You will then manage a team of people like yourself before and maybe you will earn enough overrides from your team to be financially free

On the other hand, if you manage to find a good trader or someone able to write very good trading script, consider yourself very lucky. Good traders are in high demand and in the market there is no lack of a real good trader. People who can consistently give you high returns and very low risk are highly sought after. Company monitor these traders by giving them low amount to start and increase gradually over the time.

Traders will usually split 30-70 or 40-60 with you on the profits. More advanced traders may even require AUM fees whether or not they trade or did they profit. Good traders can grow your fund regardless the fund size, of course they do earn lesser based on amount but not the fund-to-profit ratio. With a small fund size you can grow it to multiple of its size, unlike simply have a huge customer base - where it is consistent grow throughout.

It will become the best case scenario if you have existing big customer base and a pool of very good traders. You cannot just have 1 traders as business continuity and more traders can average out the losses (if any). As the fund grows, you can reinvest into the company to see faster and better profit. As the company grow, more people will invest into the company as it is backed by actual asset. This become a very powerful circle and that is how BlackRock and other big fund house grew.